How does a virtual power plant work?

A virtual power plant connects energy systems across neighborhoods to work together like one big power plant. Here’s a simplified version of how it works: Energy production: Energy devices (like solar panels) create electricity. Energy storage: Energy storage devices (home batteries or even EVs) store that electricity for later use.

What is a virtual power plant (VPP)?

Virtual power plants (VPPs) link small energy systems and smart devices into a connected network managed by a utility or energy company. By allowing them access to your systems and devices, they can support the grid during high demand and respond during emergencies. You might be thinking, “Why would I let a utility company control my home devices?”

How do I participate in a virtual power plant?

In order to participate in a virtual power plant, your system must be connected to the power grid. Learn more about the difference between on-grid vs. off-grid solar systems. VPPs can help to advance many of the goals for the power grid, from providing more reliable power to consumers to making energy more efficient and affordable.

Why are virtual power plants more resilient than centralized generating stations?

Virtual power plants are more resilient against service outages than large, centralized generating stations because they distribute energy resources across large areas. Virtual power plants aren’t new. The U.S. Department of Energy estimates that there are already 30 to 60 gigawatts of them in operation today.

How can a virtual power plant benefit Texas?

Virtual power plants can help expand access to clean energy across Texas and throughout the country, improving energy reliability, efficiency, and affordability. When consumers choose to participate in a VPP, they can contribute to decreased reliance on fossil fuels and help create a cleaner environment for all.

What is the difference between a power plant and a VPP?

One significant difference is VPPs’ ability to shape consumers’ energy use in real time. Unlike conventional power plants, VPPs can communicate with distributed energy resources and allow grid operators to control the demand from end users.